2.1.5 Office (Traditional vs Co-working)

2.1.5 Office (Traditional vs Co-working)

One of the first things people think of when thinking of the word “business” is an office! The common scene is people wearing suits and ties to a tall office building. Well, it does not have to be that way! There are different types of work environments. Many startups nowadays don’t do the whole formal attire thing and have their employees wear informal attire to work. It’s all up to you, really.

You may have heard of co-working spaces. Should you consider renting a space to serve as your office, it is a valid option. So, you may wonder, what are the benefits of getting a co-working space as opposed to a traditional office space?

Well, we are here to answer that question. Without further ado, let us dive in.

Networking Opportunities

Usually, in a co-working space, there will be other professionals sharing desks and services. Thus, connecting with them will occur very easily, and you can build your network. There are usually events to build relationships within the community through various events organised at the co-working space. Those events could be workshops or talks that could prove beneficial for you and your team.

You can share ideas with other people in the same co-working space, fostering collaboration and cross-pollination of ideas and professional networks. Co-working spaces keep members engaged with constant engagement activities and events. They try to avoid an ‘All work no Play’ culture and there is more of a healthy work-life balance.

Contrast that to a traditional office space. At the start it will be you and a few co-workers. The environment can get pretty stale after a while.

Costs

Between the two, co-working spaces are definitely a lot cheaper. The operating costs, or overhead costs, are already included in the overall membership price. The actual price depends on what you go for. You can have a private office, a dedicated desk, or a communal workspace. Regardless, it already includes high-speed internet, office maintenance and cleaning fees. Because you are sharing the space, it is much cheaper.

Amenities within a co-working space typically include a shared receptionist and mail service. The co-working space usually includes a well-stocked beverages, communal meeting/conference rooms and phone booths for private calls.

Renting a co-working space helps to cut costs by a lot. You save money on interiors, furniture, and internet and all the services mentioned earlier. Compare that to a traditional office space where you pay for overhead, internet, cleaning, electricity, a receptionist service. If you do decide to save money on those, you sacrifice the quality of your work spaces, which does not bode well for productivity.

Commitment

Co-working spaces usually offer members the freedom to decide how much they wish to commit to the space. Some people merely wish to use the space sparingly. Some people wish to utilise it in a more full-time manner. Thus, you can negotiate your plan based on your own business needs and financial situation. This usually means that your contract with the operator are not long-term ones and can be re-evaluated on a month by month basis.

Traditional office spaces, on the other hand, have long-term leases that won’t expire for, in many cases, years. The contracts tend to be more rigid, and you probably have to pay security deposits to the landlords. As a growing company, it is unwise to commit to the long term in such a manner.

Final Words

There are plenty of benefits that come from using a co-working space. It is getting to be the new trend among fresh startups for very good reasons. Sharing resources keep costs down and entrepreneurs happy. Unless you are a huge firm moving over to Singapore, it is recommended to try out using a co-working space first.

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